Members of parliament are intending to introduce a Bill to amend Excise Duty Act 2015 to stop fish imports from China from flooding the Kenyan market.
In a letter to National Assembly Speaker Moses Wetang’ula, Mr Atandi said the amendment will introduce excise duty on imported fish at the rate of 20 percent of the custom duty.
Alego Usonga MP, Mr. Atandi, argued fish imports from China are cheaper than locally produced fish. Therefore, the importation of cheap fish is adversely affecting the local industry and may lead to loss of employment in the industry.
Atandi estimated that the fish industry employs some 1.2 million people directly and indirectly through fishing, fish farming and sale.
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Excise taxes are levied on specific goods and services, and the list of goods and services subject to excise tax in Kenya are listed in the First Schedule of the Excise Duty Act, 2015.
In the past, excise duty was viewed as a ‘sin tax’ levied on goods that were detrimental to health and the environment.
These products included alcohol, tobacco, petroleum products, and sugared and sweetened beverages, in order to increase the prices of these commodities and therefore reduce their consumption and limit their access to children and the youth.
Data from the State Department of Fisheries shows that Kenya shipped in 14.8 million kilograms of fish from China in 2021, valued at Kshs 2 billion, up from Kshs 1.5 billion in 2020. Reports have shown the value of fish imports has been rising steadily in the recent years, save for 2020 because of the effects of Covid-19 pandemic.
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